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IRS Says Engine Overhauls Not Deductible As Ordinary Business Expense

The U.S. Internal Revenue Service thinks major engine overhauls are capital expenditures rather than expenses, and tax attorneys agree that even though it only represents IRS's opinion in a single case, the theory could easily be applied broadly throughout the industry with multi-million- dollar effects.
The little-noticed May 3 Technical Advice Memorandum is not a formal ruling, so it does not carry the force of law. In fact, a stamp on the document says it "may not be used or ...

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